Correlation Between Voya Multi-manager and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager and Voya Retirement at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Voya Multi-manager and Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Multi Manager Mid and Voya Retirement Moderate, you can compare the effects of market volatilities on Voya Multi-manager and Voya Retirement and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Voya Multi-manager with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Voya Retirement.
Diversification Opportunities for Voya Multi-manager and Voya Retirement
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Mid and Voya Retirement Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Moderate and Voya Multi-manager is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Voya Multi Manager Mid are associated (or correlated) with Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Moderate has no effect on the direction of Voya Multi-manager i.e., Voya Multi-manager and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Voya Retirement
Assuming the 90 days horizon Voya Multi Manager Mid is expected to generate 1.59 times more return on investment than Voya Retirement. However, Voya Multi-manager is 1.59 times more volatile than Voya Retirement Moderate. It trades about 0.12 of its potential returns per unit of risk. Voya Retirement Moderate is currently generating about 0.15 per unit of risk. If you would invest 859.00 in Voya Multi Manager Mid on September 4, 2024 and sell it today you would earn a total of 267.00 from holding Voya Multi Manager Mid or generate 31.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Multi Manager Mid vs. Voya Retirement Moderate
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Retirement Moderate |
Voya Multi-manager and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi-manager and Voya Retirement
The main advantage of trading using opposite Voya Multi-manager and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager position performs unexpectedly, Voya Retirement can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Voya Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Multi-manager vs. Vanguard Institutional Short Term | Voya Multi-manager vs. Locorr Longshort Modities | Voya Multi-manager vs. Touchstone Ultra Short | Voya Multi-manager vs. Rbc Short Duration |
| Voya Retirement vs. Voya Bond Index | Voya Retirement vs. Voya Bond Index | Voya Retirement vs. Voya Limited Maturity | Voya Retirement vs. Voya Limited Maturity |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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